Trading update and result of AGM (1903F)

TIDMDSN

RNS Number : 1903F

Densitron Technologies PLC

12 June 2012

Densitron Technologies plc

Trading update and result of AGM

Densitron Technologies plc ("Densitron" or the "Company" or the "Group") announces that, at the Company's annual general meeting held earlier today, all of the resolutions proposed to shareholders were duly passed and today provides an update on its trading activities.

Displays Business

During the year to date the Group has continued on its strategy for organic growth. As we outlined in our 2011 Annual Report our strategy is to expand geographically and to create more value by developing our own intellectual property.

In January 2012 we opened an office in India and, although it is still in its infancy, it is building a significant pipeline of business which we would expect to start being turned into revenue towards the end of the year and into 2013.

We are working on a number of projects to create intellectual property within the group which will enhance our margins and differentiate Densitron from our competitors across all subsidiaries. We have created our own range of displays and touch screens that are branded as Densitron and in addition the Group has created a suite of software to enable our customers to develop their own high quality graphics quickly and effectively.

The level of orders booked during the first six months of the tear will be higher than in 2011 but the level of sales and consequently gross profit will be behind. However, the pipeline of new business which is used as a barometer of the potential future strength of the business remains extremely strong and we expect to turn this pipeline into revenue during the second half of the year. Based on the Company's orderbook and pipeline, at this time the Directors believe the Company will meet market expectations for the full year.

Land at Blackheath

We are continuing with the strategy outlined in the 2011 Annual Report for the site at Blackheath. We are exploring the existing use rights on the site and are working on the reclassification of the site through the Local Development Framework. We will keep shareholders informed when there is further information.

Claim against the Company

We outlined in the 2011 Annual Report that the Company had been served with a writ in respect of unpaid rent relating to a property occupied by a former group company. We continue to defend the Company against this claim and will advise shareholders when there are further developments.

Outlook

The outlook for the business remains very good and the pipeline of future business suggests that we remain on track with our three year plan. The development of intellectual property strengthens the position of the Group with its customers and differentiates it from its competitors. We consider that there is still significant potential for organic growth in our existing subsidiaries and the opportunity that is being developed in India. Additional projects are being investigated that will strengthen the intellectual property base of the Group and strengthen the business further into the future.

Enquiries:

 
Densitron                        Westhouse Securities 
 Grahame Falconer / Tim Pearson   Tom Price / Martin Davison 
 Tel: [phone]               Tel: [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCFTMMTMBABBJT